Energy Summit attracts crowd

MOSES LAKE - Grant County PUD Energy Summit panelists shared

their challenges with finding qualified employees, controlling

costs and seeking future energy sources.

Panelists included eight representatives from the Moses Lake

School District, Grant PUD, Ag Power Users of Grant County,

Bonneville Power Administration, Akzo Nobel/Eka Chemicals, Seattle

City Light, Grant County and Avista Corp.

MOSES LAKE - Grant County PUD Energy Summit panelists shared their challenges with finding qualified employees, controlling costs and seeking future energy sources.

Panelists included eight representatives from the Moses Lake School District, Grant PUD, Ag Power Users of Grant County, Bonneville Power Administration, Akzo Nobel/Eka Chemicals, Seattle City Light, Grant County and Avista Corp.

The event was held to engage Grant PUD ratepayers in a dialog about utility industry issues by highlighting local challenges and discussing the challenges shared throughout the Pacific Northwest.

Panelists Monday night were asked the same questions by moderator Bill Bonaudi, president of Big Bend Community College.

About 90 people attended the event, with some asking their own questions after the moderator.

Steve Kern, power supply and environmental affairs officer with Seattle City Light, said his employer's top three concerns included future power supplies, transmission/operational issues and workforce challenges.

Dale Balcom, director of secondary education for the Moses Lake School District, said the district's concerns involved managing its energy consumption and making sure they follow green initiatives.

The district is considering an energy audit, which could trim its bottom line.

The district's primary mission is to prepare students once they leave high school and to let them know of the wonderful opportunities in Grant County.

Dennis Conley, of Ag Power Users of Grant County, said irrigators' power usage is flat or declining in consumption.

The challenge is attracting more industries to buy crops and use inputs from local farms.

Rates are another challenge, as well as looking at how far they can go with conservation in irrigated agriculture.

Akzo Nobel/Eka Chemicals Plant Manager Calvin Greene said the company's challenges include sustainability in the areas of transportation and energy being used for transportation.

He also spoke about power availability for the long term, the uncertainty involved and what it may cost.

Growth in pulp and paper products is now occurring in the South American and Asia Pacific regions, he explained.

Paper mills closed in the Northwest regions.

Knowing where the industry is going and meeting its needs are also company concerns.

Bonneville Power Administration (BPA) Chief Operating Officer Anita Decker said that 48 percent of its employees are over age 50.

"Will we have skill sets to replace them?" she asked.

Cost management is another challenge.

Costs are rising, but BPA customers are saying they can't sustain cost increases because of the economic downturn.

The complexities and dynamic movement in the power industry are significant.

During her 30 years in the industry, Decker said the industry has never been like it is today.

Other challenges include climate change, energy policy, cost allocation and regulation and compliance.

Another panelist, Grant County commissioner Richard Stevens, said the county's challenges include the budget and recruiting employees to the area.

Most tax revenues have fallen off, but Grant County is bucking the trend and doing better in most areas.

Law and justice uses between 75 and 77 percent of the county's budget and doesn't leave much for other departments.

He's seeing some industrial companies receive lower electrical rates. The companies help increase the tax base, but don't add many employees.

Recruiting employees to the area and attracting trained people is difficult.

Stevens said he is concerned about future rates, as a farmer and as a commissioner.

Dick Storro, vice president of Avista Corp., said their challenges involve minimizing rate impacts tied to capital spending, addressing requirements relative to compliance and environmental regulations and replacing its retiring workforce.

Grant PUD General Manager Tim Culbertson spoke about the district's $800 million in license implementation obligations, the need to build a new transmission line, impacts of rate increases, meeting growing load growth and its retiring workforce.

Panelists from public entities were asked to speak about how the challenges affect their organizations.

Kern, of Seattle City Light, said he sees an emphasis on rate structure and how they'll address that for customers.

The integration of load and resources is another issue.

Decker, of BPA, spoke about working hard with its talent management strategy.

Also, BPA collaborates well with customers.

But there's a point when a cost deferral can become the wrong choice.

They are involved with forums to address a number of these challenges.

Storro, of Avista Corp., said they are looking at every aspect of their business and making sure they're doing it right.

"We're actively doing everything we can to control costs," he commented.

Avista's involvement with compliance and regulation is to be involved.

"We feel if you're not at the table, you'll be on the menu," he said.

The Spokane-based Avista isn't currently experiencing problems finding job applicants, but is filling some positions by making job offers to college juniors.

Culbertson, of Grant PUD, spoke about the effects of wind integration.

There are 6,000 megawatts of wind generation online.

BPA has an obligation to integrate that in their system because it is in their control area.

He also spoke about the issue of running out of system flexibility, making it difficult to respond to increases and decreases in load.

When buying power in the market place, questions arise concerning future carbon mitigation and the amount of carbon costs in a market purchase.

During audience questions, one man asked panelists if they were supporting Texas oilman T. Boone Pickens, a wind energy advocate.

Storro said Avista Corp. wasn't directly supporting Pickens, but believes in renewable resources.

Culbertson said Grant PUD didn't have a formal position, but there were local and regional efforts to provide the integration wind needs. Grant PUD is also talking about the benefits of hydropower.

Ed Stubbington, of Moses Lake, spoke about hydro being a cheap, on-the-shelf commodity and addressed the concept of developing something we already have.

Culbertson spoke of PUD's external affairs director Andrew Munro's work as the president of the National Hydropower Association.

The country has the capacity to double hydropower in the next 20 years.

Stubbington said they're not stupid, just busy trying to eke out a nice living.

He suggested the PUD spread the opinion about hydropower to the general public and get rid of its lobbyist.

Grant PUD commissioner candidate Dale Walker asked panelists how much they spend on conservation.

Storro said Avista Corp. spent $50 million on conservation incentives.

Greene said Eka Chemicals plans to audit and revamp its lighting system next year.

Culbertson said the district spends between $1 million and $1.5 million annually in conservation, which doesn't include energy and water efficiency work.

Decker said BPA pays customers back for conservation and plans to spend $80 million on its capital side in 2011.

Three years ago, BPA spent $25 million.